Clariant spins off pigment business to Heubach and SK Capital

On June 14, Clariant announced that it had entered into a definitive agreement to divest its pigment business to a consortium of Heubach Group and SK Capital Partners for an enterprise value (EV) of CHF 805 million (approximately US$ 952.7 million) , on a cash- and debt-free basis, subject to an earnings payment of CHF 50 million, subject to the 2021 financial performance of the Clariant Pigments business. That's 10.7 to 11.4 times independently adjusted 12-month EBITDA per April 2021 (LTM). Upon closing of the transaction, Clariant will reinvest together with Heubach and SK Capital to become a 20% shareholder in the ultimate holding company. The combined company will become a global pigment company with approximately 3,000 employees, annual sales of more than 900 million euros, and strong service and production capabilities around the world. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2022. Clariant's pigments business' stake in Infraserv Höchst, Germany, was not part of the transaction.